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PrefaceObjective ■ Provide an overview of digital publishing in Europe, Asia, South America and North America, highlighting the primary differences and emerging trendsApproach ■ We’ve surveyed countries that cover 80% of the global book market ■ All the numbers presented for 2011 derive from: • 40 interviews with key players (publishers, retailers…) from major markets1 • Analysis of public data from public sources / press search ■ This is an ongoing research project that debuted at IfBookThen 2011 and was presented in Frankfurt (Publisher’s launch); London (Futurebook) and New York (DBW)All the analysis presented in these pages are a summary of a larger researchthat was developed as a joint effort of A.T. Kearney and Bookrepublic1. EU: UK, France, Spain, Germany, Italy, Denmark, Sweden, Norway, Netherlands; North America: US, Canada; South America: Brazil, Mexico, Argentina; Asia: Japan, India, China, Australia, South Korea A.T. Kearney 2

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About BookRepublic• BookRepublic is one of the leading Italian eBook stores and the front end of a system including: • eBook distribution • Readers community • Metadata management • Customer behavior profiling.• We organize IFBOOKTHEN, an international conference on digital publishing in Milan.• 40K is a native digital imprint specialized in “novelettes” and “short essays” translated in 5 languages and sold worldwide (90% of our sales coming from US). 40K is also the digital partner of a leading national newspaper in a “long articles” program.• http://www.bookrepublic.it• http://www.ifbookthen.com• http://www.zazie.it A.T. Kearney 12